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KOLKATA: YES Bank has raised $255 million loans from overseas and will swap it with Reserve Bank of India to take the advantage of the subsidised rate offered by new governor Raghuram Rajan as part of moves to attract dollar.

The bank said the landed rupee cost of borrowing after swap will be between 8.50-8.75% giving the bank a clear 150-175 basis point cost benefit. YES Bank raised the money for one and two years while raising one year corporate deposit costs a bank around 10.25% at present.

"This is the first syndicated loan deal after RBI offered the swap facility," YES Bank chief financial officer Rajat Monga told ET . "Earlier, banks were not borrowing overseas because the cost was higher after swapping the dollar fund into rupee. Lowering of swap rate make sense for both RBI and banks."

The bank said the fund will utilised for general corporate purposes and trade finance. Governor Rajan has offered banks a swap facility at 100 basis point lower rate than market to attract dollar and stem the rupee fall. He has also allowed banks to borrow overseas up to 100% of their unimpaired Tier I capital as at the close of the previous quarter or $10 million, whichever is higher. Earlier, the limit was 50%, excluding borrowings for financing of export credit in foreign currency and capital instruments.

"We borrowed within the previous limit. Our efforts will be on to raise more overseas loans through bilateral deals," Monga said, adding that it will not eye more syndicated deal this year.

The country's fourth largest private bank raised the fund in two currencies -- dollar and euro. It raised $180 million and 58 million euro. "This significant commitment from global banks reinforces our unique financial and business model, and further reposes faith and trust in the YES Bank management team, despite the challenging global and Indian micro environment," YES Bank managing director and chief executive Rana Kapoor was quoted saying in a press statement.